China's Railroads on Fast Track

China's stimulus efforts are likely to benefit the railways, offering plays on both the infrastructure and equipment companies.

China's latest mini-stimulus is likely to keep its economy—and its trains—chugging right along. "We are seeing evidence that the economy is picking up momentum again," says Zhiwei Zhang, economist for Nomura Securities who earlier this year thought GDP would expand by 7.1%. Thanks to stimulus plans outlined in April, Zhang now forecasts China will grow 7.5% this year.

Among the big beneficiaries, not surprisingly, will be the country's railways, already one of the more audacious networks in the world....